We purchased a used Ultra 40 M2, bios is 1.2. It has a clean 146Gb 15K SAS drive that upon power up shows on the boot screen. We have tried to install Windows XP 64 SP 2 with no success. When the install disk prompts to begin installation it says that it cannot find a hard drive. Possibly because there are no drivers on the install disk that recognize a SAS drive? If this is the case can someone recommend how we can install XP on this machine? Any help would be greatly appreciated.

I'm quite sure that you must pay attention to option F6 during boot of Windows XP install media which enables to load drivers for specific interfaces which are not in basic installer. Of course you will need to have drivers for Windows and your particular device at hand (fdd, cdrom, ...)